All seven applicants to start a Solana exchange-traded fund (ETF) have added staking provisions in their applications. This action represents perhaps the most consequential market-shaping windstorm change to the regulatory landscape for digital asset investment products. After a much-maligned initial position, the SEC appears to be backing off its hardline position on staking. This shift has recently been the source of a new wave of optimism among industry observers.
The recent updates to the Solana ETF filings reflect a proactive approach by issuers to align with evolving regulatory guidance. The SEC’s Division of Corporation Finance, which reviews public company disclosure, recently released new guidance. They explained why solo staking, delegated staking, and some staking-as-a-service models don’t constitute securities offerings. This would be a reversal from the much more prohibitive approach under former Chair Gary Gensler.
"Providing security is not a security." - Commissioner Hester Peirce
The SEC’s reversal on staking has generated quite a bit of optimism. That’s largely because many expect Solana ETFs to come to market with staking capabilities ahead of Ethereum ETFs. Like the Solana and Ethereum ETFs, they have an Oct. 26 final deadline for when they could be allowed to launch.
Europe is already getting a jump on offering these new and innovative investment products. In 2019 & 2021, 21Shares has launched Solana staking ETPs. In fact, their Solana product pulled in nearly twice as much assets as its Ethereum counterpart. That Solana product, meanwhile, is approaching $1B in assets under management (AUM).
"a back and forth with the SEC and issuers to iron out details" - Bloomberg ETF analyst James Seyffart
Bloomberg ETF analyst James Seyffart pointed to the continued back-and-forth between the SEC and issuers as a positive sign. Seyffart floated the idea that Solana ETFs may race Ethereum to the staking punch, but wasn’t sure. He’s convinced it’s just a matter of time before the US sees Ethereum and Solana staking ETFs coexist.
Now, excitement is building for the US market to bring us Solana and Ethereum staking ETFs. Such a shift would be in recognition of the success of physically backed Solana and Ethereum ETPs already trading across Europe.
Nguyen Thi Hanh
Cryptocurrency Writer
Nguyen Thi Hanh channels progressive, pragmatic views into high-energy, approachable crypto journalism, delivering confident, animated articles with regional and global relevance. Her optimistic, party-going spirit helps translate complex blockchain ideas into viral, visually engaging stories. Outside of writing, she enjoys urban food adventures and organizing community hackathons.
